HomePath Mortgages - What You Need to Know

Earlier in the month, I discussed the new Fannie Mae mortgage loan program, HomePath : no mortgage insurance, no appraisal, low down payments, and contributions up to 6% of the purchase price.  Now that the program has been running for a couple weeks, I am going to reveal what I have found to be true about this program.

Let’s begin with the issue on credit score.  The advertising that I am seeing is that this program is available for people with credit score as low as 580.  True… at 580 a borrower does qualify for the program, but only at 80% loan-to-value.  To get the 95-97% loan-to-value, the mid-score must be ata minimum of 660.  Now, before someone tries to argue this, yes 95% combined loan-to-value is available for a 580 credit score.  Problem… unless the seller is willing to do a 2nd mortgage for the 15% or you can get a grant/aid (IE S.H.I.P.) to help cover that difference.  Sorry, but the lender will not budge.  It is all or nothing.

Now, on to the closing costs concession.  The program allows for up to 6% of the purchase price to be given by the seller towards closing costs and pre-pays.  This means that you have to convince FNMA to give up money to help you get into the home. GREAT NEWS!!! So far, I have seen FNMA consistently give $5000 to help.  In one case, this was over the 6%, so we had to cut the concession back.  In most cases, the $5000 has covered all the closing costs leaving the buyer to just bring money for their down payment.

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Marc J Blasi

For some time now, Knightlines Mortgage Services has been offering the people of Florida a convenient way to finance and re-finance their residential property.

But that isn’t the entire story - we are also doing commercial lending in all 50 states.  AND - now we can offer commercial financing OUTSIDE of the country as well.  Caribbean, South America, etc - just call for the details.